While coal seam gas is considered to be an unconventional gas, the
proliferation of areas under exploration and development mean that it is rapidly
becoming main stream. The potential of New Zealand's coals to produce coal seam
gas has been recognised for some time. However, key market drivers have not been
suitable for the progression of this potential into reality. Kenham Holdings Ltd
and CRL Energy Ltd, recognising the potential for the gas in New Zealand have
initiated what is the largest ever assessment of New Zealand's coal seam gas
potential. The premature demise of the giant Maui field has raised the focus of
new gas developments and has increased interest in what we are doing.
Over the past couple of years Kenham Holdings Ltd and CRL Energy Ltd have
approached the assessment of the coal seam gas potential in a staged programme.
Preliminary assessment of the data on the permit areas indicates that the
potential resource may be up to 500 PJ. To date, preliminary appraisals have
been completed or are underway on a significant number of fields. Exploratory
drilling has been completed or initiated on several of those fields, with
results from this work being fed into the preliminary modelling as it has become
available.
Given that in many of these areas there is no pre-existing information
concerning their gas potential and world wide experience with lignite is
practically nonexistent, it has been a steep learning curve with many surprises.
However, initial gas content results and preliminary gas flow models have been
on the whole, rather pleasing, with the commerciality of some developments
already apparent.